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Burka [1]
3 years ago
9

Which of the following statements is CORRECT? a. During a period when a company is undergoing a change such as increasing its us

e of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. b. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0. c. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. d. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. e. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically.
Business
1 answer:
hram777 [196]3 years ago
7 0

Answer:A. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future.

Explanation: Leverage is a term used in Financial investment to mean the use of various borrowing options by an organisation in order to improve its potential to make profit or its potential to be Competitive.

Risky projects are projects known to high a high chances of loss,this type of projects can lead to severe consequence for business Organisations.

the beta of an investment is a measure of the risk which is caused by the exposure of an investment to general market changes as opposed to internal factors that can have severe negative impact on an investment.

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Dowd, Elgar, Frost, and Grant formed a general partnership. Their written partnership agreement provided that the profits would
goblinko [34]

Answer:

The answer is: Edgar will receive $37,000

Explanation:

  • Dowd's share of the company's losses is $80,000
  • Edgar's share of the company's losses is $60,000
  • Frost's share of the company's losses is $40,000
  • Grant's share of the company's losses is $20,000

But since Grant is not willing to give more money to the partnership to cover his losses, the $9,000 difference must be divided by the remaining three partners. So they will divide Grant's losses as follows:

  • Dowd's share of the Grant's losses is $3,600
  • Edgar's share of the Grant's losses is $2,700
  • Frost's share of the Grant's losses is $1,800

Then you add up all the losses the three remaining partners had:

  • Dowd' total losses $83,600
  • Edgar's total losses $62,700
  • Frost's total losses $21,800

So when the partnership was dissolved, Edgar should have received $100,000 (capital) - $62,700 (total losses) = $37,200

I selected answer A since they probably rounded down Edgar's share to $37,000 (nearest possible choice).

6 0
3 years ago
What are organizations that are in the business of benefiting society and operate like a business called
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Answer:

Nonprofit organisation

Explanation:

A nonprofit organisation is also known as nonbusiness entity is dedicated to promoting a social cause by taking surplus in the society to further a particular objective. Nonprofit organisations are usually exempt from tax for the contributions they receive.

There are not accountable to shareholders but rather to donors, volunteers, program recipients, and the community at large.

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3 years ago
A new business owner would want to know the competition’s strengths for all the following reasons EXCEPT
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Answer:

Option D

To me, I think option D is the most preferred answer

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Peterson Photoshop sold $2,700 in gift cards on a special promotion on October 15, 2021, and sold $4,050 in gift cards on anothe
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Answer:

aswer is

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because is Hp is globally science

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